GLOBAL MARKETS DJIA 32889.09 72.17 0.22% Nasdaq 11466.98 72.04 0.63% S&P 500 3982.24 12.20 0.31% FTSE 100 7935.11 56.45 0.72% Nikkei Stock 27539.07 115.11 0.42% Hang Seng 20002.89 59.38 0.30% Kospi 2424.72 22.08 0.92% SGX Nifty* 17494.50 6.5 0.04% *March contract USD/JPY 136.18-19 -0.04% Range 136.36 136.12 EUR/USD 1.0596-99 -0.12% Range 1.0616 1.0587 CBOT Wheat March $6.960 per bushel Spot Gold $1,817.18/oz 0.03% Nymex Crude (NY) $75.69 -$0.63 US STOCKS
U.S. stock indexes inched up, holding steady after logging their worst week of the year amid concerns that the Federal Reserve will need to keep raising interest rates to slow the economy and tame inflation.
The S&P 500 gained 0.3%, while the Dow Jones Industrial Average added 0.2%. The Nasdaq Composite increased 0.6%.
Consumer discretionary, industrials and information technology stocks boosted the S&P 500. Union Pacific popped 10% after the railroad company said it would acquiesce to pressure from an activist hedge fund and replace its chief executive.
James Rutherford, head of European equities at Federated Hermes, said that while recent inflation surprises have unsettled markets, selloffs have been relatively short lived.
"Last week, some of the data spooked people and yields moved up again. But here we are on Monday morning and actually that's sort of all forgotten about," said Mr. Rutherford. "People are slightly hardened to it and understand that rates might go a little bit higher...but the market is not looking at next month's inflation data, it's looking at six months or nine months or even 12 months."
ASIAN STOCKS
Japanese stocks were higher in early trade, led by gains in electronics stocks, thanks partly to the yen's recent weakness despite continuing uncertainty over policy tightening by central banks. Investors were focusing on economic data and their policy implications. The Nikkei Stock Average was up 0.5% at 27550.60. The index has traded around 27500 the past few weeks.
South Korea's benchmark Kospi rose 0.8% to 2422.27 in early trade, tracking Wall Street's rebound overnight. The local index is regaining ground after a two-session losing streak. Battery, steel and auto stocks led the advance in morning trade. Risk-off sentiment was easing. USD/KRW was trading 0.4% lower at 1,318.00.
Hong Kong's Hang Seng Index rose 1.0% to 20151.10 in morning trade, as risk appetite recovered following Wall Street gains overnight. The main theme has been the modest bounce in U.S. equities, with investors striving to recoup some ground, Commerzbank analysts said in a research report. Investors were also digesting strong economic data and hotter-than-expected inflation of late, the analysts added. Gains on the benchmark index were broad-based. The Hang Seng Tech Index was up 0.8% at 4022.90.
Chinese stocks were higher in morning trading, showing signs of improvement from the muted trading pattern in recent weeks. The benchmark Shanghai Composite Index inched up 0.3% to 3268.77 and the Shenzhen Composite Index gained 0.5% to 2135.56. The ChiNext Price Index was 0.6% higher at 2423.56. The market has remained range-bound in recent sessions, as buying interest has cooled significantly after January's rally. Some investors are questioning whether the market presents further upside. But China Securities analysts said in a note that the rebound trend is likely far from over, as the market's current valuations still look undemanding compared with historical levels.
FOREX
Asian currencies were mixed against USD in the Asian morning session, but their weakness may be limited by technical factors. A number of USD/Asian-currency pairs are at or near interesting technical levels for those who might be bullish Asian currencies, said Alvin T. Tan, head of Asia FX Strategy at RBC Capital Markets, in an email. USD/CNH is approaching the 7.0000-7.3000 area, which provided resistance in December and support in October-November, while USD/MYR is similarly approaching technical resistance layered around the 4.5000 level, Tan said. USD/CNH fell 0.1% to 6.9513, while USD/IDR rose 0.2% to 15,230.00 and USD/SGD was little changed at 1.3471.
METALS
Gold prices were little changed in early Asian trade. While the precious metal came under pressure after the release of stronger-than-expected U.S. PCE inflation data on Friday, gold remains supported due to a weaker U.S. dollar, ANZ analysts said in a note. Spot gold was up 0.03% at $1,817.18/oz.
OIL SUMMARY
Crude oil prices were mixed in early Asian trade. Inflation concerns could weigh on prices, as well as the prospects of a dimmer global economic outlook, said Tina Teng, markets strategist at CMC Markets, in a note. However, Russia is halting oil exports to Poland, which should limit losses, she added. The front-month WTI contract was up 0.1% at $75.72/bbl, while the front-month Brent crude contract fell 0.2% to $82.32/bbl.
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(END) Dow Jones Newswires
02-27-23 2215ET
